Insurance industry forming activist army

Ahead of the approaching health care reform storm, the insurance industry is building an ark: a nationwide education campaign aimed at raising an activist army at least 100,000 strong.

The unprecedented effort by America’s Health Insurance Plans, called the Campaign for an American Solution, includes a nationwide listening tour, advertising and an intense recruitment effort aimed at signing up Americans who are satisfied with their private insurance coverage. AHIP President and CEO Karen Ignagni plans to launch the campaign Tuesday by hosting a discussion among a group of uninsured people in Columbus, Ohio.

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“On an issue as big and far-reaching as health care reform, you need to be working with real people and you need to have a reach outside the Beltway,” AHIP spokesman Michael Tuffin told Politico in an interview outlining the industry’s strategy. “The issue isn’t going to be settled just by lobbyists in Washington. The American people are going to have their say.”

The massive outreach is AHIP’s attempt to drive debate in a political climate that has had the industry on the defensive since Democrats took control of Congress last year.

Democrats have been critical of insurance company practices such as denying coverage based on pre-existing conditions. And just this week, Congress cut billions of dollars from industry-administered Medicare plans to better fund doctors who treat traditional Medicare patients. When President Bush sided with the industry and vetoed the cuts — a veto that Congress promptly overturned — insurers won few new friends.

“There will be a mix of cynicism and hope in reaction to [the industry’s campaign]. To a large degree, the onus will be on the health plans to be a constructive force. I think they get this, but the proof will be in the pudding,” said Chris Jennings, a Democratic health care strategist.

The let’s-all-play-together approach is a marked departure from the Dr. No persona that helped insurers kill President Bill Clinton’s health care reform plan nearly 15 years ago, even after insurers and the administration had initially struck a collaborative stance.

This time, though, the industry’s collaborative attitude is more than a nod to political realities; it’s also an acknowledgement that spiraling costs are threatening its business models. Universal coverage could increase the market and lower costs, which might make reform smart politics and good business.

Often viewed in Washington as a faceless, profit-driven industry, health insurers hope that hitting the road and starting a fan club will help lawmakers better understand the value of their products.

To spread the AHIP gospel and sign up true believers, the group has planned dozens of unscripted roundtables in cities from Albuquerque, N.M., and Denver to Boston and New York. The discussions will include union members, working families, faith and community leaders, and small-business owners and employees. The roundtables are an opportunity for the industry to hear feedback on its ideas, Tuffin said.